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Question: you are a staff economist for your local bank and...

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You are a staff economist for your local bank and the bank manager asks you to calculate whether United Arab Emirates (UAE), Luxembourg (LUX), Canada (CAN), or the United States (USA) is biggest in per capita terms when adjusted for price differences. She gives you the following data table and asks you to fill in the missing values. Population (column A) and GDP (D) are in millions. GDP in column D is in local currency units (LCU): the euro for Luxembourg, the dirham for the UAE, the Canadian dollar, and the U.S. dollar The exchange rate (B) is units of foreign currency per U.S. dollar, and Pi /Pus is the price level for other countries relative to the United States Luckily, theres a whole team assigned to this task and you only have compute PPP Per Capita GDP ($US) for the UAE in 2014 (someone else will take care of the rest). This is done most easily in a spreadsheet application like Excel Table 2.5: GDP, Population, and Exchange Rate Data in 2014 PPP Per Capita Capita Per Capita GDP Rate Pi/Pus (millions LCU) GDP GDP ($US) $US) LCU Per Exchange GDP Pop UAE LUX CAN USA 9.09 0.56 35.6 319.4 3.67 0.75 1.11 1.00 2.4 1,466,985 0.9 1.2 1,973,043 1.00 17,348,072 48,898 (Source: World Bank and Penn World Tables 9.0)

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